Major Hack Hits WazirX: Over $230 Million in Crypto Stolen
In a shocking turn of events, Indian cryptocurrency exchange WazirX has fallen victim to a devastating hack, resulting in the theft of more than $230 million worth of customer funds. The attack, which targeted one of WazirX’s multisig wallets, has sent shockwaves through the crypto community and caused significant market disruptions.
The hack primarily affected several popular cryptocurrencies, with Shiba Inu (SHIB) taking the hardest hit. Over $100 million worth of SHIB tokens were stolen, causing the meme coin to experience a sharp decline of nearly 10% in value. Other major cryptocurrencies were not spared, with $52 million in ether (ETH), $11 million in MATIC, and $6 million in PEPE also falling prey to the attackers.
The Anatomy of the Attack
The breach occurred in one of WazirX’s multisig wallets, which required approvals from six signatories – five from WazirX and one from Liminal – for transactions to be processed. The hackers exploited a vulnerability in the system, taking advantage of a discrepancy between what was displayed on Liminal’s interface and the actual transaction details. This clever manipulation allowed them to bypass the established security measures and gain unauthorized access to the funds.
In response to the attack, WazirX immediately implemented a temporary pause on withdrawals to safeguard the remaining assets. The stolen funds represent a staggering 45% of WazirX’s total reserves, which were valued at $500 million according to a report from June 2024. This significant loss has raised serious concerns about the exchange’s financial stability and its ability to protect user assets.
Market Impact and WazirX’s Response
The repercussions of the hack have been felt across the crypto market. The attacker has been actively selling the stolen tokens, including SHIB, on the onchain exchange Uniswap, further contributing to market volatility. Additionally, the incident has led to significant discounts in the prices of cryptocurrencies on WazirX, including bitcoin and tether, likely due to panic selling and a rush for fiat currency.
WazirX has publicly stated its commitment to resolving the issue and recovering the stolen funds. The exchange has promised transparency throughout the process and pledged to keep its users informed of any developments. However, the road to recovery may be long and challenging, given the scale of the theft and the complexities involved in tracing and retrieving stolen cryptocurrencies.
